What the New Infrastructure Law Means for the Fastener Industry
On November 15th, President Joe Biden signed his $1.2 trillion infrastructure bill. With bipartisan support, the legislation invests in funding for roads and bridges, rail, transit, ports, airports, the electric grid, water systems and expanded broadband. Eric Hoplin, National Association of Wholesaler-Distributors (NAW) CEO, stated that “this legislation will help the wholesale distribution industry more efficiently move goods and materials across the country, benefitting both American businesses and consumers. Bipartisan collaboration results in great achievements for our country, and this investment in infrastructure is a victory for all Americans.” So, the question for our industry now is “What does this historic legislation mean for the fastener world?”
Updating and upgrading US infrastructure as the economy recoveries will create opportunities in many sectors, which would lead to a higher demand for fasteners and all materials. Building new physical infrastructure will require various steel products, cement, lumber, and other material inputs. Modernizing federal equipment includes buying new vehicles. The bill includes a total of $40 billion of new funding for bridge repair, replacement, and rehabilitation, which is the single largest dedicated bridge investment since the construction of the interstate highway system. The deal’s $65 billion investment ensures every American has access to reliable high-speed internet with an historic investment in broadband infrastructure deployment. The bill sets aside $7.5 billion to help build a national network of electric vehicle charging stations. Biden's ultimate goal is to have a nationwide network of 500,000 EV chargers.
The American Iron and Steel Institute (AISI) estimates that for every $100 billion of new investment in infrastructure it could increase demand for domestic steel by as much as 5 million st. The Steel Manufacturers Association shared a similar estimate, stating that every $100 billion of investment can incrementally increase steel demand by 4 million st to 6 million st. Passage of the bill provides a "tremendous boost" to the US steel industry, Kevin Dempsey, CEO of the American Iron and Steel Association, said in a statement.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said, "Solar is a job-creator, and the long-term tax incentives for solar, storage and domestic manufacturing will put us on a path to decarbonize the electric grid, reach the President’s 2035 clean energy target, and create hundreds of thousands of quality career opportunities in every community."
As you can see, most of these initiatives will require significant use of fasteners of some type. Due to its federal funding, the fasteners used in these projects will likely need to be made in the USA, and some will need to be mil-spec fasteners. If you’d like assistance sourcing domestically manufactured or mil-spec fasteners, contact China Special Fasteners at +86-755-27859830 for help.